2025’s M&A Activity Signals a Pivotal Year for the Future of Flex Space

By Margaret Guelzow, Head of Client Experience

The early days of 2025 have been marked by transformative M&A announcements that underscore the growing importance of flexible workspaces in the real estate sector. CBRE’s $800 million acquisition of Industrious and Yardi’s dual purchases of Deskpass and Hubble building on Yardi’s landmark move in late 2024 to acquire a majority stake in WeWork for $450 million as part of the company’s bankruptcy exit. Together, these developments led by major leaders in the industry signal a decisive pivot toward a flex space-dominated future.

Flex Space as the Cornerstone of Real Estate Strategy

CBRE’s move to acquire the remaining 60% stake in Industrious illustrates how major players are reshaping their portfolios to prioritize flex space. By fully integrating Industrious into its service offerings, CBRE is betting on a future where workspace agility and hybrid solutions are the new norm.

Yardi’s acquisition of WeWork, along with its subsequent purchases of Deskpass (US) and Hubble (UK), represents a pivotal moment for the flex space industry. By taking majority ownership of WeWork during its bankruptcy exit, Yardi is uniquely positioned to combine WeWork’s expansive global footprint with its powerful technology platforms, creating a seamless integration of operations and innovation. Yardi is setting a new standard for how technology and operations can converge to make flex space not just viable but essential for the future of work. 

These acquisitions point to several key trends shaping the flex space market:

  • Agility as a Competitive Advantage: As hybrid work becomes the standard, businesses increasingly prioritize workspace solutions that can flexibly adapt to changing workforce needs. Flex space providers are uniquely positioned to deliver this agility, offering scalable and customizable options.
  • Technology-Led Tenant Experiences: The integration of technology into workspace management is critical to the success of flex space. Platforms that enable seamless booking, utilization tracking, and operational optimization are becoming essential. Companies like Yardi and CBRE are leveraging technology to enhance efficiency, tenant experiences, and data-driven decision-making.
  • Global Reach and Scalability: Flex space operators with established international footprints are well-positioned to meet the needs of multinational clients. Both CBRE’s acquisition of Industrious and Yardi’s majority stake in WeWork underscore the importance of scale and cross-border capabilities in capturing global demand.

Why Flex Space Is Poised for Growth

The flex space sector is experiencing a perfect storm of market conditions driving growth.  CBRE’s analysis reveals that employees desire flexibility in their work environments, with 85% of global respondents preferring to work remotely at least two to three days a week. This preference has made flexible office spaces a critical component of modern corporate real estate strategies, enabling organizations to remain agile and responsive in a dynamic work landscape (Source: here).

  • Hybrid Work Normalization: The demand for shorter leases, adaptable spaces, and decentralized office solutions has made flex space a critical component of corporate real estate strategies.  
  • Corporate Cost Management: Organizations are increasingly using flex space to optimize costs by reducing long-term lease commitments and embracing pay-as-you-go workspace models. This approach helps align real estate costs with actual usage, particularly in a fluctuating workforce environment.
  • Scalability Through Maturity: The growth and maturation of the flex space market have made it easier for companies to scale operations globally, supported by established brands like WeWork and Industrious. This maturity provides businesses with reliable, proven solutions and the confidence to integrate flex space into their long-term strategies.

Strategic Implications for the Industry

These moves highlight key imperatives for players in the real estate sector:

  • Act Swiftly: The race to dominate flex space is underway. Companies that delay risk missing out on prime opportunities or paying a premium later.
  • Focus on Integration: Successful M&A activity hinges on operational synergy. Both CBRE and Yardi’s ability to integrate Industrious and WeWork into their broader ecosystem will be critical.
  • Invest in Innovation: The companies that prioritize advanced technology, enhanced user experiences, and operational efficiency will lead the next wave of growth.

Flex Space: The Future of Real Estate

2025 has already established itself as a transformative year for flex space. The combined efforts of CBRE, Yardi, and other key players are reshaping the industry, moving it toward a future where flexibility, technology, and global reach are the hallmarks of success.

As these companies redefine the competitive landscape, the flex space market is poised to expand rapidly, offering new opportunities for innovation and growth. The question is no longer whether flex space will dominate the future of real estate – it’s how quickly and decisively industry leaders can adapt to this new reality.

Margaret Guelzow is a seasoned real estate technology executive, with extensive experience in global business technology and asset services. As Cherre’s Head of Client Experience, she leverages her deep industry insights and strategic expertise to ensure the company’s product development remains tightly aligned with customer needs and industry challenges.